By Daily Revelation Reporter
ZESCO managing director says the utility firm is determined to allow more private participants in the electricity supply industry in an amenable manner because Zambia is open for business.
Mapani stated this during the signing and successful execution of a System Operation (Agreement (SOA) between ZESCO and GreenCo Power Services Limited.
According to a joint statement issued by the two companies, SOA defines the operational parameters for GreenCo’s supply of electricity from the 28 MW Ilute Solar PV plant to be constructed in Western Province of Zambia onto ZESCO power grid system and subsequently sold into the Southern African Power Pool (SAPP).
The collaboration between ZESCO and GreenCo on this project further demonstrates the viability of an open access regime in Zambian Electricity Supply Industry (ESI) in line with the logislative amendments of 2019.
“Situated in Sesheke district of Western Province, the 250 MW llute Solar Power Project shall be the first of its kind in Africa, using the competitive markets of the SAPP to mitigate customer default risk by leveraging the diversified customer base in contrast with the transitional practice of transferring project risk to the national treasury,” read the statement in part. “ZESCO will be compensated by GreenCo for providing system operations services. The Ilute Power Project is being developed by a consortium comprising Western Solar Power, a Zambian developer and Serengeti Energy.”
Chief Executive Officer of GreenCo Ana Hajduka expressed gratitude to ZESCO and the government for its continued support of GreenCo’s business.
Hajduka stated that the successful execution of the System of Operations Agreement with ZESCO signifies a significant milestone on the road to implementing a group project.
“More importantly, it contributes to the development of a market framework that facilitates greater private investment and operational integration with the national unity in a synergistic manner and bodes well for the future readiness of Zambia’s electricity scorers,” the statement read.
The two companies in their statement added that the execution of SOA aligns with the objective articulated by President Hakainde Hichilema that to promote competition and allow for non-discriminatory access to electricity transmission and distribution infrastructure by the private sector, the government is in the process of implementing an open access regime, where the private sector players will be able to wheel power to their customers and will also help remove ZESCO from entering into unsustainable power out have agreements.
It further stated that President Hichilema during his speech, commended ZESCO for harnessing the execution process of power purchase agreements with Independent power producers since 2021, a catalytic enabler to attracting private as public investment in the Zambian electricity supply industry.
